Black Canyon Coffee Case
Black Canyon Coffee (BCC)
Case Analysis
Situation Analysis
Black Canyon Coffee (BCC), founded in 1993 in Thailand, is a privately held, largest chain of coffee shop in Thailand serving western style coffee together with Asian style popular Thai food to consumers, with a strong incentive of sustainable international expansion. Key external forces dominating the company's performance and the internal competencies and weaknesses affecting the key results are identified in below summary table.
Strength
Unique menu offering mix-matching coffee with savory Thai food (differentiated customer experience)
Wide-spread presence of chains throughout the country against international brand's targets in uptown locations only
Strong local community knowledge and relationship with local customers as compared to international brands
Reasonable & affordable pricing
Ownership of unique coffee processing design (supported by local university)
Corporate office functional supports in key process areas of procurement, logistic, restaurant design and support, employee development
Weaknesses
Limited internal financial capital to fund international expansion
Weak international investor relation limiting access to external capital fundamental for growth
Scarce multi-linguistic Human capital deterring international expansion
Inefficiency in handling complex supply chain problem associated with international operation (stale inventory or stock shortages)
Opportunities
Ever increasing coffee demand globally
Consumer's changing coffee habit pattern to more upscale coffee types than traditional types
Government support in local coffee industry which BCC can leverage for sustainable supply chain stability
Potential "exit strategy" of competitor in Thailand thus potential opening of market segment
Threat
Increasing strong head-to-head competition in the industry (increasing presence of international brands such as Starbucks as well as local chains such as Coffee World)
Strong potential threat
Case Analysis
Situation Analysis
Black Canyon Coffee (BCC), founded in 1993 in Thailand, is a privately held, largest chain of coffee shop in Thailand serving western style coffee together with Asian style popular Thai food to consumers, with a strong incentive of sustainable international expansion. Key external forces dominating the company's performance and the internal competencies and weaknesses affecting the key results are identified in below summary table.
Strength
Unique menu offering mix-matching coffee with savory Thai food (differentiated customer experience)
Wide-spread presence of chains throughout the country against international brand's targets in uptown locations only
Strong local community knowledge and relationship with local customers as compared to international brands
Reasonable & affordable pricing
Ownership of unique coffee processing design (supported by local university)
Corporate office functional supports in key process areas of procurement, logistic, restaurant design and support, employee development
Weaknesses
Limited internal financial capital to fund international expansion
Weak international investor relation limiting access to external capital fundamental for growth
Scarce multi-linguistic Human capital deterring international expansion
Inefficiency in handling complex supply chain problem associated with international operation (stale inventory or stock shortages)
Opportunities
Ever increasing coffee demand globally
Consumer's changing coffee habit pattern to more upscale coffee types than traditional types
Government support in local coffee industry which BCC can leverage for sustainable supply chain stability
Potential "exit strategy" of competitor in Thailand thus potential opening of market segment
Threat
Increasing strong head-to-head competition in the industry (increasing presence of international brands such as Starbucks as well as local chains such as Coffee World)
Strong potential threat